How to Analyze an Industry

Getting Started

Determine What You Need to Know. Need or end-user usually determines sophistication and depth of information. Who is the recipient of the research and what is it being used for? Self-knowledge, presentation, report, etc.?

Conduct a Brainstorming session if possible.

Write down all information which you might want to know (notecards, computer, board)

Note all questions and ideas no matter how trivial or stupid they may seem at the time.

Try to organize the questions into categories such as: marketing, new products, statistics, media/info sources

Assign people to various tasks if working in a group. Prioritize and make a schedule.

Also, look atStandard & Poor's Industry Surveys (found in Reference), which goes into detail on How to Analyze an Industry and particular ratios and other information to be aware of.

Questions Often Asked in an Industry Analysis

You will want to get an general understanding/overview of the industry you are researching. The following are some of the best sources available: Standard & Poor's Industry Surveys (found in Reference), or by going to Business Insights: EssentialsIndustry Search, putting in the name of the industry or searching by SIC/NAICS code and choosing Industry Overview or Market Research (tabbed headings).

Look at the list of questions below and their corresponding sources (found in the sidebar)

Market Share

Who are the dominant players? This is often mentioned in industry overviews and articles. Use the same sources listed under News, Trends and Forecasts and search using the industry name or SIC/NAICS codes and terms such as: market share or rank or ranking or top or leaders.

News, Trends and Forecasts

The following are recommended. In the world of business, anything older than 6 months is considered ancient history.

Business Insights: Essentials -search under Industry by name or SIC/NAICS code. You might also search under Articles -putting in the name of the industry and then looking under Narrow by Subdivision for headings such as industry sales & revenue, statistics, market size, market share, etc.

Innovations/New Products

You might wish to search the following databases or websites using the name of the specific industry as a subject or using SIC/NAICS codes if posssible along with such words as: new products, service introduction, product introduction, etc.

Legal/Regulatory Issues

When analyzing an industry, one should be aware of current and possible future regulatory actions, pending bills, laws and possible cases. The following sources may be helpful.

LexisNexis Academic -Go to Sources, Find Sources, Choose Publication Type, then News and Business Topics. (There are a wide variety of both industry and legal choices)

Code of Federal Regulations (CFR)Codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government. The 50 subject matter titles contain one or more individual volumes, which are updated once each calendar year, on a staggered basis. Each title is divided into chapters, which usually bear the name of the issuing agency. Each chapter is further subdivided into parts that cover specific regulatory areas.

Regulations.govGovernment website for finding regulations issued by U.S. government agencies.